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That's the problem. You add bankruptcy back in and the student loan problem will disappear. Banks will start assessing each person's ability to pay back loans b
by jostmey 10y ago
That's the problem. You add bankruptcy back in and the student loan problem will disappear. Banks will start assessing each person's ability to pay back loans before giving them a lifetime burden of debt.
Fix bankruptcy laws, fix the student loan problem.
- melling 10y agoHow do you evaluate an 18 year old on their ability to pay back the loan? You ask them their major, which will probably change?
- jrs235 10y agoAlso, one doesn't have to approve loans for the full education. Approve loans per semester. If major changes the creditor could choose not to extend anymore debt. Likewise, creditors could require transcripts as part of qualifying for loans beyond the first semester. A students grades would have weight in whether to continue extending credit (granted some [particularly for-profit] schools might cheat and inflate grades but accreditation of schools would also be factored in loan approval... much like banks rely on home appraisers for mortgages).
- melling 10y agoSo you're incorrectly implying that people aren't successfully graduating? The problem is that people are graduating with huge debt and can't get jobs that pay well enough to pay off their debt.
- morgante 10y agoDid you read the article? A large number of the people who default on their debt never graduated.
- jrs235 10y agoRather than assuming and saying "did you read the article?" Perhaps rephrase your point to be: "According to the article..." or "The article says..." I normally would down vote a comment that starts with DYRTA. I haven't this time, I wanted to use the opportunity to express how I think we can maintain HNs civility. Thank you.
- melling 10y agoYou're right. The majority owe less than $10,000. "Federal figures show most people in default on student debt owe relatively little—under $10,000—because they dropped out of school"
- jrs235 10y ago>You ask them their major, which will probably change? Sure. And if they change then their loan status/situation will change. Just like my mortgage through my Credit Union. The terms of the mortgage when I refinanced was owner occupied for 12 months after the closing date. If I move out prior to the 12 months I'm technically in default and the holder of my note gets to choose what to do.
- ceejayoz 10y ago> Banks will start assessing each person's ability to pay back loans before giving them a lifetime burden of debt. 17-18 year olds often aren't going to have much of a credit score, so you're basically winding up excluding folks from low-income areas/backgrounds from a college education. Are you going to ban students from changing their major after a few weeks?
- zaccus 10y agoWhy are you asking these things like they're hypothetical? The way we did student loans prior to 2005 worked just fine. Low income students weren't excluded back then were they? Just roll it back to that.
- ceejayoz 10y agoStudent loans prior to 2005 were still backed by the government in the case of default. Little incentive for banks to worry about it.